Finance minister insists on new taxes
Finance Minister Diana Dragutinović says she has not given up on taxing salaries, which would include measures for the taxation of wages higher than RSD 40,000.
Monday, 17.08.2009.
13:07
Finance Minister Diana Dragutinovic says she has not given up on taxing salaries, which would include measures for the taxation of wages higher than RSD 40,000. She told Belgrade tabloid Press that the proposal for increasing taxes on these wages by 20 percent and by 10 percent on lower wages would be the best solution. Finance minister insists on new taxes Dragutinovic said that this is much less of a burden for 65 percent of workers who are making average wages or slightly above, which means that “it is the more just solution for the majority.” She reminded that the proposal, which has yet to be given to the government for debate, was given in November of last year initially, when the first agreement with the International Monetary Fund was made. “This proposal is in accordance with good international practices and is a lot more just than the current system,” she said. Dragutinovic said that she hopes Serbia will be able to reach an agreement with the IMF, because “all moves we have to make in order to get the second installment of loans have been prepared and we only have to choose what order they will go in”. Asked whether a VAT hike is unavoidable, she said that "nothing is inevitable" and that “there is always the best option or the least bad option”, adding that "everything depends on the size of the current and future public spending".
Finance minister insists on new taxes
Dragutinović said that this is much less of a burden for 65 percent of workers who are making average wages or slightly above, which means that “it is the more just solution for the majority.”She reminded that the proposal, which has yet to be given to the government for debate, was given in November of last year initially, when the first agreement with the International Monetary Fund was made.
“This proposal is in accordance with good international practices and is a lot more just than the current system,” she said.
Dragutinović said that she hopes Serbia will be able to reach an agreement with the IMF, because “all moves we have to make in order to get the second installment of loans have been prepared and we only have to choose what order they will go in”.
Asked whether a VAT hike is unavoidable, she said that "nothing is inevitable" and that “there is always the best option or the least bad option”, adding that "everything depends on the size of the current and future public spending".
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